What are the opportunities to invest in Georgia today?
Considering the fact that Georgia’s economy is reaching success peaks so quickly, it is not wrong to say that you can invest in many realms in this country and sleep with a free mind at night. Here are the most reliable fields you can invest in, in Georgia:
Reliable fields to invest in Georgia
1. Energy
Since 2004, the domestic demand for electricity has been rising significantly. What is the result? Georgia became a net exporter of electricity between 2007 and 2011. There are several power plans in Georgia already under construction. Once the construction finishes, exports are forecasted to grow more and more, especially in the summer period.
Since 2008, Georgia has had a liberalized and deregulated market of energy. There are no tariffs defined for a newly constructed power plant. Investors are free to pick a market and negotiate the price.
Turkey is one of the most desirable markets for the electricity generated in Georgia. Turkey stands first in Europe and second globally after China in terms of electricity demand increase. The country experiences the scarcity of electricity during the summer, while Georgia enjoys a generation surplus.
2. Real Estate and Hospitality
This is one of the fastest-growing sectors of the Georgian economy. Georgia has had a constantly growing number of visitors during recent years; in 2018, around 8.7 million visitors visited Georgia, while the population of the country is 3.7 million people.
Georgian people enjoy natural and cultural resources since the country holds in it more than 12,000 historical and cultural monuments, four of which have been added to the list of UNESCO World Heritage Sites.
Bagrati Cathedral is one of Georgia’s monuments in UNESCO World Heritage Sites.
Georgia connects Asia to Europe through three international airports. The country has a Visa-Free Regime with citizens of 94 countries all over the world. According to the World Tourism Organization, Georgia has one of the fastest-growing rates of tourist arrivals among all Europian countries. More and more people are visiting Georgia every year, seriously!
Investors in Georgia can develop hotel and leisure, residential, retail, and office premises. The country stands 6th on the Global Retail Development Index published in 2015. Investors can benefit from the high demand for “A class” office buildings and entertainment facilities.
3. Manufacturing
Georgia’s inborn advantage as a bridge connecting Europe and Asia makes investors benefit to a high extent in the manufacturing sector of the whole economy. Manufacturing in Georgia holds 11% of total GDP and 5% of the workforce employment.
The average salary of an employed worker in the manufacturing industry in Georgia is 355 dollars. According to the high unemployment level in Georgia, salary is expected to remain constant. Plus, companies can take advantage of Free Training Opportunities; there are numerous centers around Georgia providing expert courses in practical fields, many of which are financially supported by the government.
4. Regional logistics hub
The special location of Georgia makes it a highly strategic county over the map, acting as an energy corridor to the Caucasus and Central Asia. This corridor is based on the historical Silk Road passing through the country.
The transportation economy in Georgia revolves around the transit. This transportation flow is breathing new life into the historical route between Europe and Asia for trading.
Asian landlocked countries can benefit from Georgia’s geographic location as an entry gate to export oil, coal, zinc, copper, etc.
Among the three essential roads connecting Asia to Europe, the road through Georgia is the most reliable and secure one. This reliability comes from the stable economy and politics of Georgia. Additionally, the Suez Channel has reached its maximum capacity, so many countries are considering new, reliable routes.
5. Agriculture and food processing
Traditionally, and even now, agriculture is still considered to be a strong bone of total Georgia’s GDP. Agriculture and agribusiness are in general shaping 9.2 percent of the GDP and 17.5 percent of trade volume.
Agriculture has formed the foundation of Georgia’s economy.
Georgia enjoys a highly versatile climate, varying from cool and dry to warm and humid. This various climate type is in favor of agriculture, hence letting the farmers help the economy more and more by their agricultural deeds. They can produce a wide variety of vegetables, grains, fruits, etc.
The expenditures an investor faces when investing in agriculture, including the workers’ salaries, are low enough not to worry about the process risks. Water resources, energy, and other utilities are easily accessible and cheap in Georgia.
6. Tourism
Tourism is what Georgia has been working on magnificently during recent years. As a result, this sector can be known as the fastest-growing one in the country, developing a myriad of small business opportunities throughout the country.
What’s more, the climate in Georgia is as versatile as you can pick an area of your interest to embark on your new business. There is a huge number of absolutely stunning resorts in the country where you can take advantage of in favor of your business.
In addition to all the resorts, there are numerous branches of international hotel chains in Georgia. One can find much investment potential regarding solely the hotels in touristic districts.
Where are the investors in Georgia from?
Many of the investors in Georgia are actually firms or individuals from other countries. The Foreign Direct Investment (FDI) is defined as an investment made by a firm or individual in one country into business attractions in another country. According to the charts published by the National Statistics Office of Georgia (GeoStat), the country has received a total of 1.26 billion dollars in the form of foreign direct investment in 2018.
Again according to GeoStat, the majority of foreign investors are from Azerbaijan, The United Kingdom, and The Netherlands. In brief, the top 10 investor countries of Georgia from 1996 to 2017 are as follows:
- Azerbaijan | 2,375 million dollars
- The United Kingdom | 1,886 million dollars
- The Netherlands | 1,686 million dollars
- The USA | 1,510 million dollars
- Turkey | 1,396 million dollars
- UAE | 773 million dollars
- The Virgin Islands | 666 million dollars
- Russia | 633 million dollars
- The Czech Republic | 591 million dollars
- Luxembourg | 559 million dollars
Summary
To sum up, we should say that Georgia is a great country. Invest in Georgia and see how fast your money returns. The country has a special geographic location on the map. What’s more, doing business is really easy in Georgia, even easier than doing business in the USA and the UK. The country’s economy is growing fast and is free of corruption. Additionally, the taxes are low in Georgia and the country is overflowing with skilled workforces too.
You can invest in Georgia in many thriving sectors. Sectors such as energy, real estate, hospitality, manufacturing, regional logistics, agriculture, and tourism are the main ones you can invest your money in.
The investors in Georgia are mostly from Azerbaijan, The United Kingdom, and The Netherlands. Additionally, investors from the USA, Turkey, UAE, The Virgin Islands, Russia, The Czech Republic, and Luxembourg bring their money to Georgia too.
So, are you going to invest in Georgia now?